Australian deal activity down

Overall deals in Australia have dropped 22.4 percent while overall global activity declined by 24.5 percent in 2023.

According to findings from GlobalData’s deals database, a total of 1301 deals, comprised of mergers and acquisitions (M&A), private equity (PE) and venture capital (VC), were announced in Australia during 2023. 

The data shows this is a 22.4 percent dip compared to the announcement of 1677 deals in Australia during the previous year. 

“All the deal types under coverage registered decline in Australia," Aurojyoti Bose, lead analyst at GlobalData told Digital Nation. 

"The number of M&A, private equity and venture financing deals declined by 16.2 percent, 35.3 percent and 38.4 percent, during 2023 compared to the previous year, respectively,” Bose said.  

Global levels dip

According to the global findings, deals of all types showed signs of setbacks with notable shrinkage in private equity and venture capital firms.  

A total of 52,534 deals covering M&A, PE and VC agreements were announced globally during 2023, compared to 69,606 deals in 2022. 

Bose said, “Several macroeconomic challenges and uncertainties created volatile market conditions throughout 2023."

“The year began with a cautious outlook and the dent in dealmaking sentiments continued to prevail throughout on the back of the ongoing geopolitical tensions, inflation, hike in interest rates and recession fears,” Bose said.

The downward trends were seen across all regions and key markets according to the findings. 

Bose said, “While all the deal types suffered setbacks during the year, deal-making was notably down for PE/VC firms.”

In a breakdown of the figures, the number of M&A deals fell by 17.2 percent, whereas the volume of private equity and venture financing deals declined by 28.3 percent and 33.6 percent, during 2023 compared to 2022.